* § 4107. Domestic mutual companies; financial and other requirements.
(a) (1) A mutual property/casualty insurance company organized in the
manner prescribed in subsection (a) of section one thousand two hundred
one of this chapter may be licensed pursuant to subsection (e) of
section one thousand one hundred two of this chapter to write any one
kind (but only one kind except as hereinafter in this section provided)
of insurance as specified in TABLE TWO upon at least meeting the
requirements set forth therein. In this section, "initial surplus" means
the paid-in initial surplus required pursuant to subparagraph (A) of
paragraph nine of subsection (a) of section one thousand two hundred one
and subparagraph (B) of paragraph one of subsection (e) of section one
thousand one hundred two of this chapter, and "minimum surplus" means
the surplus required to be maintained unimpaired after a company is
licensed to do business.

* SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:

Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of
the former Insurance Law that are not possible to juxtapose at this time
due to the highly technical nature of such changes and will need future
corrective legislation to implement such provisions into the new
Insurance Law as enacted by such Chapter 367 of the Laws of 1984.

TABLE TWO
Kind of
insurance
specified
in the
following Num- Number
numbered Num- ber of
paragraphs ber Number of Insur- Minimum
of subsec- of of Sep- ance Surplus
tion (a) Mem- Appli- arate Poli- Initial to be Other
of § 1113 bers cations Risks cies Surplus Maintained Requirements
--------- ----- ------ ----- ---- ------- ---------- ------------

4 50 300 300 -- $ 300,000{1}$ 200,000{1}see note{2}

7 20 20 200 20 $ 300,000 $ 200,000 see note{3}

8 20 20 300 20 $ 150,000 $ 100,000 see note{3}

9 20 20 200 20 $ 300,000 $ 200,000 see note{3}

10 20 20 300 20 $ 150,000 $ 100,000 see note{3}

11 20 20 300 20 $ 150,000 $ 100,000 see note{3}

13 100 100 500{4} -- $ 500,000{5}$ 400,000{5}see note{6}

15 40{7} 40 2,500{7} -- $ 500,000 $ 400,000 see note{6}

30{7} 30 5,000{7} -- $ 500,000 $ 400,000 see note{6}

20{7} 20 7,500{7} -- $ 500,000 $ 400,000 see note{6}

10{7} 10 10,000{7} -- $ 500,000 $ 400,000 see note{6}

16 -- -- --- -- $1,500,000 $1,000,000

17 20 20 2,000 20 $ 750,000 $ 500,000 see note{3}

20 50 300 300 -- $1,000,000{8}$ 500,000{8}see note{9}

21 20 20{10} 200{11}-- $ 500,000 $ 500,000 see note{12}
Notes to TABLE TWO

{1} If licensed to write paragraph 4, no additional surplus is
required for a license to write pargraphs 5, 6, 12, 19 and 20 (inland
marine only).

{2} The aggregate premiums in respect to the separate risks shall be
at least $100,000 and each applicant shall have paid one-half of the
premium payable with the balance due upon the issuance of the policy.

{3} Shall have received cash from each applicant at least equal to 1/2
of the annual premium on the policy.

{4} Not more than 5 risks from any one member.

{5} If licensed to write paragraph 13, no additional surplus is
required for a license to write paragraphs 6, 12 and 14.

{6} The aggregate annual premium cost of such insurance shall be at
least $50,000.

{7} Substitute "employers" for "members" and "employees" for "separate
risks"

{8} If licensed to write paragraph 20, no additional surplus is
required for a license to write paragraphs 12, 19, and 21.

{9} The aggregate amount of cash received for the premiums on the
policies applied for shall be at least $150,000.

{10} The 20 applications shall be from persons, firms, corporations,
associations or joint stock companies, each owning, operating or
chartering one or more vessels.

{11} Applicants shall take insurance covering in the aggregate at
least 200 vessels having an aggregate gross tonnage of at least 500,000
tons.

{12} Shall have received cash, from such applicants, on account of the
premiums on the respective policies applied for, a sum at least equal to
20 cents per ton upon such aggregate gross tonnage.

(2) A mutual property/casualty insurance company whose membership is
limited to hospitals may be organized in the manner prescribed in
subsection (a) of section one thousand two hundred one of this chapter
and may be licensed pursuant to subsection (e) of section one thousand
one hundred two of this chapter to write the kinds of insurance
specified in paragraph thirteen or fourteen of subsection (a) of section
one thousand one hundred thirteen of this chapter provided (i) it shall
have applications from at least forty members on at least forty separate
risks, (ii) the total annual premium cost shall be at least seven
hundred fifty thousand dollars, (iii) it shall have an initial surplus
of at least five hundred thousand dollars and shall maintain a surplus
of at least four hundred thousand dollars and (iv) it shall receive from
its members advances pursuant to the requirements of section one
thousand three hundred seven of this chapter averaging not less than
one-third of the average annual indicated premium, but the total thereof
shall not be less than the initial minimum surplus.

(b) If licensed to write any kind of insurance specified in TABLE TWO,
a mutual property/casualty insurance company may in addition write any
one or more of the kinds of insurance specified in Group A and/or Group
B of TABLE THREE, and if licensed to write any kind of insurance
specified in Group A, it may in addition write any one or more of the
kinds of insurance specified in Group C of TABLE THREE, in either case,
upon at least meeting the initial surplus requirement prescribed in
TABLE THREE for the kinds of insurance for which it is to be licensed.
It shall thereafter maintain the minimum surplus prescribed in TABLE
THREE for the kinds of insurance licensed.

TABLE THREE
Kind of insurance specified in the Minimum
following numbered Paragraphs of Initial{1} Surplus{1} to
subsection (a) of § 1113: Surplus be Maintained
_________________________________ _________ _____________

Group A:
7 or 9 - for each such kind $100,000 $100,000
8, 10 or 11 - for each such kind $ 50,000 $ 50,000
13,{2} 15 or 17 - for each such kind $300,000 $300,000
16 $900,000 $900,000

Group B:
4{3} $ 300,000 $200,000
20{4} $1,000,000 $500,000

Group C:
3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000
22 $3,000,000 $2,000,000
24 $ 300,000 $ 300,000
26 (B) $ 300,000 $ 200,000
26(A), 26(C) or 26(D) -
for each such kind $ 900,000 $ 600,000
28 $3,000,000 $2,000,000
6{5}, 12{6} or 14{2} - for
each such kind $ 50,000 $ 50,000
27 $ 300,000 $ 150,000
30 $ 300,000 $ 300,000
31 $ 100,000 $ 100,000
32 $ 100,000 $ 100,000
33 $ 100,000 $ 100,000
Notes to TABLE THREE

{1} The amounts shown in TABLE THREE are added to the initial and
minimum surplus for the kind of insurance for which the mutual was
organized as set forth in TABLE TWO. In addition, if organized to write
paragraphs 4, 20 or 21 the initial and minimum surplus required for
paragraphs 7, 8, 9, 10, 11, 13, 15, 16 or 17 shall be determined from
TABLE TWO for the kind of insurance with the highest initial surplus
requirement as indicated in TABLE TWO. After such determination use
TABLE THREE to derive the initial and minimum surplus requirements for
all other kinds of insurance.

{2} If licensed to write paragraph 13, no additional surplus is
required for a license to write paragraphs 6, 12, and 14.

{3} If licensed to write paragraph 4, no additional surplus is
required for a license to write paragraphs 5, 6, 12, 19 and 20 (inland
marine only).

{4} If licensed to write paragraph 20, no additional surplus is
required for a license to write paragraphs 12, 19, and 21.

{5} If licensed to write paragraph 4 or 13, no additional initial and
minimum surplus is required.

{6} If licensed to write paragraphs 4, 13 or 20, no additional initial
and minimum surplus is required.

(c) A mutual property/casualty insurance company licensed pursuant to
paragraph four of subsection (b) of section four thousand one hundred
two of this article to write the kind of insurance specified in
paragraph nineteen of subsection (a) of section one thousand one hundred
thirteen of this chapter must maintain a minimum surplus of at least six
hundred thousand dollars.

(d) A mutual property/casualty insurance company licensed pursuant to
subsection (c) of section four thousand one hundred two of this article
to reinsure risks or write insurance on risks outside the United States,
its territories and possessions, must maintain a surplus to
policyholders of at least thirty-five million dollars.

(e) The dollar amounts of initial surplus, minimum surplus and surplus
to policyholders set forth in subsections (a), (b) and (c) of this
section shall be reduced by fifty percent for any mutual property/
casualty insurance company initially licensed to do business in this
state prior to July first, nineteen hundred eighty-two. Such reduction
shall not apply to the financial requirements specified in subsection
(b) of this section in order to write paragraph twenty-two, twenty-four
or twenty-six.

(f) Notwithstanding any provision of this section to the contrary, if
licensed to write the kind of insurance specified in paragraph fifteen
of subsection (a) of section one thousand one hundred thirteen of this
chapter, a mutual property/casualty insurance company may be licensed
for the purposes of article nine of the workers' compensation law to
write the kind of insurance specified in item (i) of paragraph three of
subsection (a) of section one thousand one hundred thirteen of this
chapter without having any additional surplus.